The export of American spirits to Canada saw a significant decline of 85% in the second quarter of 2025, causing concern for the Distilled Spirits Council of the United States. This drop is attributed to trade tensions leading consumers in key international markets to choose alternatives to U.S.-made products.
Due to U.S. President Donald Trump’s imposition of tariffs on Canadian goods in early March, American alcohol has been largely absent from Canadian shelves and unavailable in bars and restaurants.
According to a recent report by the council, exports to the U.K. and Japan decreased by 29% and 23% respectively, but the most substantial decline was observed in Canada. These countries, alongside the European Union, represented 70% of U.S. spirit exports in 2024.
The council, which represents producers of spirits like whisky, vodka, rum, and brandy, stated in a report that the decrease in exports to Canada could be a response to the perceived unfairness of U.S.-imposed tariffs, leading consumers to support domestic industries or opt for non-U.S. products. Sales to Canada dropped below $10 million US in the second quarter.
In response, council CEO Chris Swonger highlighted that trade tensions are negatively impacting U.S. spirit exports, urging the President to facilitate a return to tariff-free trade with longstanding partners for the industry’s sustained growth.
The council did not respond to an interview request by the deadline.
Recent negotiations between Canadian and American officials aim to resolve the tariff issues, as mentioned by Prime Minister Mark Carney.
Brown-Forman, the parent company of alcohol brands like Jack Daniel’s and Woodford Reserve, reported a 62% drop in sales to Canada during the first fiscal quarter of 2026, ending on July 31. CEO Lawson Whiting attributed this decline to the trade dispute causing significant challenges for U.S.-produced brands.
Robert Huish, an associate professor at Dalhousie University, expressed no surprise at the decrease in U.S. spirit exports to Canada, highlighting major Canadian purchasers such as LCBO and SAQ, which have a significant impact on American spirits and wines sales.
Nova Scotia Witnesses Surge in Local Alcohol Sales
The Nova Scotia Liquor Corporation, the province’s largest alcohol retailer, noted a boost in sales of local products following the removal of American items from shelves. Sales of Nova Scotia spirits and wine increased by 24.2% and 15.1% respectively from March 4 to Sept. 15 compared to the previous year.
Olivia Giffen, vice-president of marketing and retail at Coldstream Clear, a Nova Scotia spirits and beer producer, mentioned a significant rise in spirit sales due to consumers actively seeking local alternatives.
Canadian Wine and Whisky Experience Growth
Additionally, Canadian wine and whisky sales surged by 8.9% and 8.5% respectively compared to the previous year, as reported by the NSLC.
If the trade dispute gets resolved and American alcohol returns to the
